Latest news with #Botha
IOL News
11 hours ago
- Business
- IOL News
Mixed reactions to Reserve Bank's 25 basis points interest rate cut
South Africa Reserve Bank (SARB) Governor Lesetja Kganyago announced a 25 basis point cut to the repo rate on Thursday - that was widely expected - bringing it down from 7.50% to 7.25% with some economists welcoming the cut and others criticising its timidity in addressing the nation's pressing economic woes. This decision, made by the Monetary Policy Committee (MPC) offers modest relief to borrowers in an economy grappling with sluggish growth and rising unemployment. The decision to cut rates was unanimous, with one MPC member voting a 0.5% cut. Kganyago said they have now trimmed GDP projections and currently expect growth of 1.2% this year, rising to 1.8% by 2027. 'The outlook for structural reforms remains positive, but there are also headwinds like lower global growth. Given the lower forecast, we assess the risks to growth as balanced. Inflation was below 3% again in April. Core inflation came in at 3%, at the bottom of our target range,' he said. Reza Hendrickse, a portfolio manager at PPS Investments, said the market has been divided regarding a rate cut. "Doves have argued inflationary pressures are subdued and real interest rates in SA are therefore too high. As such, there is ample scope to cut rates to support economic growth, without stoking inflation. Hawks on the other hand have argued that there is limited room for a cut, given rates are close to the SARB's neutral level, and global risks are elevated, posing risk to the rand. In addition, although inflation is well below the 4.5% mid-point level, it is currently in the region of where the SARB would like it to be longer term," Hendrickse said. Dr Roelof Botha, economic Advisor to the Optimum Investment Group, took the hawkish view. 'It should be glaringly obvious that South Africa's most pressing economic problem is not high inflation, but a lack of adequate economic growth and employment creation,' Botha said. He argued that the real prime rate - currently at 8% after accounting for inflation - remains historically high, representing a 156% increase in the real cost of capital compared to the era of former Governor Gill Marcus, when the economy grew at nearly 3% annually. Botha said the MPC might be oblivious to the latest Quarterly Labour Force Survey by Statistics SA, which contained the news of higher unemployment. 'A quarter of a million people lost their jobs during the first quarter of 2025, which will obviously have a negative impact on taxation revenues and aggravate an already alarming fiscal deficit, not to mention the hardship and increased levels of abject poverty amongst households where the bread-winner is now on the street.' Botha pointed out that the current economic climate presents an opportune moment for more aggressive rate cuts, similar to those seen during Marcus's tenure, when the real prime rate averaged 3.1%. 'The MPC seems oblivious to the dire unemployment figures and the fiscal deficit's strain,' he added, warning that the modest cut may fail to stimulate the economy sufficiently. In contrast North West University Business School economist Professor Raymond Parsons took a dovish view and welcomed the rate cut. 'At this stage, even a small reduction in interest rates can have a big positive impact on the national economic mood and on confidence levels. Although it is recognised that monetary policy cannot do the heavy lifting in SA's growth performance, lower borrowing costs are nevertheless supportive of SA's incipient but weak economic recovery,' he said. Parsons pointed out that the reduced growth projections remain indicative of the extent to which the implementation of much-needed structural reforms must be expedited to basically improve SA's growth prospects. Efficient Group Chief Economist Dawie Roodt said while reduction in interest rates was "pretty much expected" that he thought there is room for further reduction in interest rates. "The interesting thing is that the SARB is putting pressure on the Minister of Finance to reduce inflation targets because inflation is below 3% and the SARB would like to see inflation targets at around 3%. I don't think it would cost the Minister much to reduce inflation targets as inflation is below 3%. We should expect another interest rate cut in July or September,' he said. Frank Blackmore, the lead economist at KPMG, said that the reason for the rate cut was the low inflation rate. 'The Reserve Bank remains data dependent in that respect, as well as the easing of some of the risks such as the exchange rate. Probably another interesting scenario where they're reducing the target rate from a current, 4.5 % objective so the midpoint of the three to 6% range to the 3% objective so the bottom of their three to 6% range.' BUSINESS REPORT Visit:
IOL News
21-05-2025
- Business
- IOL News
South Africa's budget 3. 0: A year of fiscal upheaval and strategic changes
As the months slip into May, the fiscal landscape continues to evolve, presenting both challenges and opportunities for the economy. Image: Ziphozonke Lushaba / Independent Newspapers In a financial milieu punctuated by unexpected shifts, South Africa's Finance Minister, Enoch Godongwana, unveiled his third National Budget for the fiscal year, titled Budget 3.0. The intricate journey to this point has been nothing short of extraordinary, marked by the postponement of the first budget and the withdrawal of the second due to legal wrangles. As the months slip into May, the fiscal landscape continues to evolve, presenting both challenges and opportunities for the economy. Joubert Botha, Head of the Tax and Legal practice at KPMG in Southern Africa, offered insights into the key elements of this revised budget, focusing on the implications for taxpayers and the broader economic framework. 'This year's budget has been marked by a comprehensive reevaluation of tax revenue projections," Botha said, reflecting on the substantial R61.9 billion downward revision of anticipated revenues. This significant adjustment signals the government's cautious approach amid ongoing economic uncertainty. One of the most discussed aspects of Budget 3.0 was the decision to forego an increase in Value Added Tax (VAT) that had stirred controversy in public discourse. Botha said that there would be no expansion of the zero-rated basket nor any hike in VAT rates. Instead, the budget placed emphasis on an inflationary increase in the fuel levy, a move set to stimulate various facets of fiscal support. Moreover, amid the fiscal recalibrations, the government has allocated R7.5 billion in funding to the South African Revenue Authority (SARS). This infusion of resources aims to enhance tax collection efforts, with projections of raising an additional R20 to R50 billion. The strategic focus on modernisation of SARS is set to bolster efficiency, ensuring the institution can adeptly tackle its collections mandate in an ever-evolving economic landscape. Notably, Budget 3.0 does not accommodate inflationary adjustments to personal income tax brackets or medical tax credits, a feature that many taxpayers will keenly feel, particularly as inflation continues to challenge household budgets. In contrast, adjustments to excise duties on alcohol and tobacco have been made, symbolising the government's stance on ensuring that certain sectors contribute fairly within the tax framework. As the budgetary processes unfolds, there is an anticipation of new tax measures to be proposed in the upcoming disbursements. Botha elucidated that further adjustments in the budget could herald innovative approaches to stimulate growth and address national priorities more effectively. "In summary, South Africa's Budget 3.0 encapsulates the narrative of a nation grappling with economic challenges while attempting to chart a strategic path forward. The absence of immediate VAT increases, alongside targeted funding for SARS and moderated adjustments in other tax areas, creates a complex but compelling fiscal tapestry as the country endeavours to stabilise and grow its economy amid numerous headwinds," Botha said. BUSINESS REPORT Visit:
The South African
20-05-2025
- Sport
- The South African
Ranked: Three greatest Springbok goal-kickers of all time
The history of Springbok rugby has been littered with incredible examples of goal-kicking heroics and special players who were remarkably accurate in front of goal. With this in mind, we have attempted to rank the three greatest Springbok goal-kickers of all time. 1 Naas Botha I mean, how could we ever overlook a man who was dubbed the ' Nasty Booter ' for his incredible kicking ability, and which saw him accumulate 312 points from just 28 Tests. Botha was a pure points machine and simply boasted an aura and ease from the kicking tee that truly set him apart as one of the all-time greats. To categorise Botha as a kicking flyhalf alone would do him a great injustice, but his place-kicking prowess and drop-goal ability made him one of the most lethal figures in front of goal. 2 Morne Steyn If you were going to bet your house on a place kicker, many would have very little issue in selecting Steyn as the man they'd want to step up, particularly in high pressure situations. Who could ever forget his incredible match-winning kicks at opposite ends of his career against the British & Irish Lions, 12 years apart? It epitomised the goal-kicking expertise of a player who hardly put a foot wrong when stepping up to the kicking tee, and who racked up a whopping 742 points in 68 Tests (only 40 of which came from tries). 3 Percy Montgomery The Springboks' all-time leading points scorer, he was an absolute ice man when kicking at goal, which is also quite incredible considering he didn't start out his career as a frontline goal kicker. However, by the time he ended his career, Montgomery had virtually perfected his his abilities as a goal kicker, hardly ever missing off his trademark short run up. He was never a particularly flashy player, but his reliability in front of goal truly defined his role as one of the most influential Springboks of all time. Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
20-05-2025
- Politics
- IOL News
South African woman faces backlash for claiming refugee status to join husband in the US
Jackie Botha's from Gqeberha, who flew to the US is being labelled as opportunistic after she allegedly went to the country to meet with her husband. Jacqueline 'Jackie' Botha, an Afrikaner woman from Gerberha, in the Eastern Cape is under fire after reports surfaced that she allegedly exploited the US refugee resettlement program to reunite with her husband, who is already living in the United States. Botha is among a group of 49 white South Africans who recently arrived in the US, claiming racial persecution in their home country. However, social media users have questioned the legitimacy of these claims, calling her move opportunistic. According to the local broadcaster Newzroom Afrika, Botha left her home in Rowallan Park, an affluent and family-oriented suburb in Gqeberha, formerly Port Elizabeth. The neighborhood is described as quiet and leafy, and her residence reportedly had CCTV surveillance. Reports indicate that the 52-year-old left South Africa with her three children. A former employee of Botha told the news channel that her husband has been living abroad for the past two to three years.
IOL News
20-05-2025
- Politics
- IOL News
‘She just wanted a free trip' : SA woman slammed for refugee claim to join US husband
Jackie Botha's from Gqeberha, who flew to the US is being labelled as opportunistic after she allegedly went to the country to meet with her husband. Image: X/@incontroZA Jacqueline 'Jackie' Botha, an Afrikaner woman from Gerberha, in the Eastern Cape is under fire after reports surfaced that she allegedly exploited the US refugee resettlement program to reunite with her husband, who is already living in the United States. Botha is among a group of 49 white South Africans who recently arrived in the US, claiming racial persecution in their home country. However, social media users have questioned the legitimacy of these claims, calling her move opportunistic. According to the local broadcaster Newzroom Afrika, Botha left her home in Rowallan Park, an affluent and family-oriented suburb in Gqeberha, formerly Port Elizabeth. The neighborhood is described as quiet and leafy, and her residence reportedly had CCTV surveillance. Reports indicate that the 52-year-old left South Africa with her three children. A former employee of Botha told the news channel that her husband has been living abroad for the past two to three years. The South African government has strongly denied allegations that White Afrikaners are facing persecution, countering the narrative presented by some of those seeking asylum. While crime remains a major issue in many parts of Gqeberha, particularly in township areas known for gang violence, hijackings and other violent crimes, Rowallan Park is reportedly not known to be affected by these crimes. It is not known what form of persecution Botha or others in the group claim to have experienced, including her professional background before she flew to the US. On social media, public reaction has been mixed, with some users ridiculing Botha's alleged motivations. 'She wanted a lift to be rejoined with her husband,' wrote user @Vugo_Mhaga. 'Rowallan Park. A suburb. Little crime. Definitely no persecution. She just wanted to check up on her husband who stopped answering her calls,' tweeted @Raul_AJ_1990. 'She just wanted to find a way to go join her husband in America and this opportunity opened up,' added @AmuFloyd. Meanwhile, South African President Cyril Ramaphosa is in Washington, D.C, this week for an official visit. He is scheduled to meet with US President Donald Trump on Wednesday to address strained relations between the two countries. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
